Biodegradable Biotech Breakouts:
Biotech investors and Met fans have something in common. We have been conditioned to accept defeat. But could sentiment be becoming so bad in the group, that even a small bit of good news can get the space rocking again? Wednesday did complete a bullish island reversal with the gap up, although the XBI CLOSED 2.5% off intraday highs on a candle which could be considered a bullish inverted hammer. Some green shoots are the strength on an awful tape this Monday, as the XBI was green for a good portion of the day. Sure we may be cherry picking but that could have been a tell. Since the devilish intraday low of 66.66 on 4/9 with that huge bullish engulfing candle rising more than 7% it has not declined in back-to-back sessions. To demonstrate how washed out sentiment is, the XBI is looking for its first 3-week win streak since last June and last week did record a rare doji candle (the only other one in last 2.5 years was one at the top the week ending 9/20/24. Top ten holding GILD REPORTS after the CLOSE Thursday, and will give us a good feel what to expect going forward. Will this strong-performing mega-cap start to put some capital to work via acquisitions that could finally start to get this group going in the second half?